Compare Listings

Investments

Invest in Property in Spain

There has never been a better time to invest in property in Spain. In 2017, the benefits of the strengthening economy are being felt up and down the Costa del Sol. The property market has shown steady growth throughout the year, exceeding all forecasts. Prices are starting to see modest increases, and this trend is due to continue into 2018 and beyond. Investment is in coming from abroad with the Scandinavian and Belgian buyers picking up the slack from the Brexit riddled Brits. Smart investors are once again looking to invest in Spain as a safe yet promising investment for the future.

There are many good reasons to invest in property in Spain.

Benefits of Buying Off Plan

Construction is back in full swing, with some excellent new developments going up for the first time since 2008. For many, the best investments lie in the exclusive off plan developments prominent in the towns to the East and West of Marbella; most notably Estepona and Mijas.

Savvy buyers benefit from the attractive pricing of First Phase Release options, where developers release their initial units off-plan up to 40% below market value. With developers increasing their prices up to 4 times during the construction process, those who buy early get to cherry pick the best units, and have the most to gain in terms of Capital Appreciation.

Learning from the mistakes of the past, buyers payments are assured with bank guarantees, and water tight contracts offering risk free investments for those who have the confidence to buy early.

Others are snapping up previously bank owned developments. This is a wise option for those looking to make their gains from rental income and want to reap the immediate benefits of the high holiday rental incomes. As a buy to let proposition, there is far more to gain on the Costa del Sol than any other domestic rental market in Northern Europe.

We can show you a range of options to invest in Spain including off plan, key ready and previously owned. Whilst each have their own merits, the property market in general on the Costa del Sol is more attractive than ever for the investor.

Here are just a few reasons why:

10 reasons to invest in property in Spain

1. Low Prices

After the 2008 recession, referred to here as “la Crisis” Spanish real estate took a significant tumble. According to this years data, the crises is now over and recovery is very much on. Property price increases are apparent in big cities like Madrid and Barcelona and that trend is now starting to spill over into coastal towns, especially in sought after areas in and around Marbella

2. Economic Growth

The outlook in Spain is looking sunny in more ways than one. As of April 2017, Spain has shown 14 consecutive quarters of growth. The economy has recovered well since the government implemented a series of reforms including overhauling the banking system and reforming the labour market. Growth remains much higher than that in the Eurozone overall, thanks to tourism and exports thriving. Unemployment has fallen from a 27% high in 2013 to 18% in April 2017, and likely to drop during the summer boom months. Positive moves in employment means higher gross disposable household income. The national budget deficit is reducing and GDP is positive. Major international funds are investing hundreds of millions of Euros into the purchase of development land on the Costa del Sol. With historically low-interest rates, investment in land and development promises investment yields far greater than that obtainable elsewhere. Spain’s economy has staged an impressive turnround over the last few years after being one of the most badly-affected countries during the financial crisis.

3. Tourism

Spain is one of the most popular tourist destinations in the world. July 2017 surpassed all existing tourism records in Spain. Never before have so many foreign visitors arrived in the country in a single month: 10.51 million, compared with the previous record of 10.02 million, set in August of 2016, according to the National Statistics Institute (INE). The July record comes on the back of a year-on-year rise of 10.1% in tourist arrivals. This has a direct impact on the strength on the holiday rental market.

After surveying thousands of vacationers in popular destinations, the INE found that all forms of accommodation are on the rise, but most particularly holiday apartments which rose 23.2% for tourist apartments.

This demand offers a fantastic opportunity for those wishing to invest in property for holiday rentals. Short term rentals to tourists, is a far more profitable route to long term leases. That coupled with the benefit of having a personal overseas holiday home, provides enough incentive for the smart investor to buy property in Spain.

4. Strong potential for price increases

Whilst other markets such as Germany and the UK are already at the peak of property prices, Spain has plenty of room for increases in both rentals and sales. For investors this means there is plenty of Capital Growth opportunity over the coming years. This also means that purchases should be made, sooner rather than later to take full advantage of the gains potential.

5. Value for money

You get a lot of bang for your buck in Spain. Food, transport, housing, and services are all very reasonably priced. Also, good for business, labour in Spain is 25 % cheaper than in the rest of the Eurozone.

6. Attractive borrowing

Spain’s property market is a far cry from the fragile bubble that existed before the financial crisis of 2008. Increasing government regulation of financial institutions and more effective regulations on banks and lenders has prompted a culture of financial safe practice. Base rates continue to fall in the Eurozone and currently sit at an all-time record low. Mortgage rates in Spain are now cheaper than ever. In addition, lending by the banks increased by 17% in January 2017 against the previous year. This demonstrates that Spanish lenders are keen to lend to non-residents and overseas investors.

7. Excellent geographical location

The door to Africa and the Americas, and gateway to the Mediterranean. Spain is in a very privileged location. It’s also a member of the EU. In a globalized economy, geographical location plays an important role in business. At this level, Spain is one of the best places in the world to invest.

8. Quality of life

Spain is consistently rated by foreign residents as having the best quality of life in Europe. Aside from the weather. Spain has one of the best healthcare systems in the world, a rich cultural history, great food and over 8000km of coast and great beaches.

9. Improved quality and professionalism

New buyers entering the market are finding an amazing number of new projects for sale of a substantially higher quality than in the past. A more sophisticated, experienced and caring developer has arrived. Bucking the pre-crash trend, new developers are keen to give excellent value for money to their purchasers and invest more time and effort into producing properties of a superior quality. This offers significant rewards to the buyer and developer alike. Developers with projects underway are enjoying much more interest from buyers and substantial success in sales as a result. Buyers are finally receiving an increasingly broad choice of top end properties with an incredible range of luxury features, prices and locations.

10. Automatic residency for homebuyers

Spain offers residency permits to non-EU nationals in return for an investment of €500,000 in Spanish real estate. This is known as the ‘Golden Visa’

If you like many others are interested in investing in property on the Costa del Sol, start your journey search now by clicking here, or contact us today for more details